Winnipeg | Reuters — Canadian farmers reaped record profits last year and are on track to do the same this year, the federal agriculture ministry said on Thursday, as prices for its top crops soared.
Prices of canola hit all-time highs this month, rallying with oilseed rival soybeans, on brisk Chinese buying to produce feed for that country’s rebuilding hog herd. Farm exports in general were stronger last year, the ministry said in a statement.
The record profits come despite disruptions to beef and pork production, as COVID-19 infections forced plants to suspend processing, leading to a backlog of livestock and lower prices.
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Olymel, one of Canada’s biggest hog packers, recently temporarily closed its Red Deer, Alta. plant, forcing it to send some pigs to the U.S.
Farmers’ net cash income, a measure of profitability, jumped 21.8 per cent in 2020 from the previous year to $16.5 billion, driven by increased sales value of the main field crops, Agriculture and Agri-Food Canada said.
Net cash income looks to climb another 6.8 per cent this year, to $17.6 billion, the ministry said.
Livestock sales dipped 1.9 per cent last year and the horticulture industry also struggled, the farm ministry said.
Demand for Canadian barley has surged, with key buyer China in a trade dispute with usual supplier Australia. Spring wheat, another principal Canadian crop, is trading near more than three-year highs.
— Reporting for Reuters by Rod Nickel in Winnipeg.
